What's the difference between a credit card and a debit card?

Credit cards, debit cards, prepaid cards, virtual cards…thanks to technology, there is a growing variety of cards each with its own features. In addition to cash withdrawals or the purchase of goods and services in stores and other establishments, cards allow you to pay with your cell phone, receive alerts for each movement made or shop online in a more secure way. Alcune sono collegate ad un conto corrente, altre invece funzionano come delle semplici carte ricaricabili in cui versare contanti tutte le volte che se ne ha bisogno.

The method of paying by card in stores and online is increasingly widespread and used above all for safety and convenience. Although the operation between a debit card and a credit card may be similar, there are differences and they have different features that must be taken into account to manage them correctly and to make the most of the advantages that each one offers.

To understand the difference, let's first start with the main features of each of these cards. 

Carta di debito

The debit card (commonly called ATM card) allows you to spend only the balance in your checking account. It is the most used card due to its simplicity and convenience.

• It's linked to your checking account.
• When you make a withdrawal at an ATM (or cash machine) it is deducted from the balance you have available in your account at that moment. 
• The debiting of a payment in a store or online is done automatically in real time.
• The balance limit depends on the total amount of money you have in your checking account. 
• It allows for the withdrawal of cash at ATMs (cash machine) without fees. You pay only if the cash withdrawal takes place at a bank that does not have an agreement with your bank or when abroad.
• A PIN code is required to be able to withdraw cash or pay in stores.
• For online spending, the CVV code on the back of the card, the name of the cardholder and the PAN are required.
• You can also use it abroad because it is often associated with international circuits.

The debit card is secure and versatile, suitable for both online purchases and in-store purchases.

Credit card

The credit card allows you to make purchases even when you don't have cash because the expense is usually charged to your account the month following the payment made.

• You can make payments in stores and online with money that your bank lends you and that you have to pay back within a certain period of time. 
• It has a credit limit set by the bank and determined on the basis of your income. 
• It allows you to finance purchases you wouldn't otherwise be able to make with your income or savings.  
• It allows you to withdraw cash from ATMs (cash machines) by paying a fee.
• It can be used and is often required as a guarantee for hotel reservations, travel, car rental, etc.

Payment by credit card offers the great advantage of always having a credit limit that can be used for your purchases and expenses.

Now that we have seen the main features and methods of use, let's go back to the initial question: What's the difference between a credit card and a debit card?

The difference between a debit card and a credit card is essentially related to how we pay the debt generated by our purchases. With a debit card, the payment is debited directly from the cardholder's checking account, thus allowing payment only if you have cash and up to the limit of funds in the account.

With a credit card, on the other hand, you can pay even if you have no funds, and postpone the payment until the following month. In this way, the cardholder takes out a debt with the bank and it is for this reason that before granting a credit card, the bank will verify that the customer has an income to cover any expenses.
Payment is usually debited from your checking account by the 15th of the month following the transaction and can be checked on your bank statement each month. With online banking, you can actually check the situation of your account at any time and wherever you are, thus being able to view all credit card transactions. This will allow you to check how much you are spending on credit and not find any surprises when your checking account is charged.

Ultimately, although the credit card is more flexible and has higher ceilings, with a debit card it is not possible to make purchases that require a greater amount than that available on your checking account, thus ensuring greater security and control.
Is it better to have a debit card or a credit card then? The answer is: It depends. There is no best solution but the most suitable solution for each person who will choose according to their needs and the type of use they will have to make of it.

We have seen that with the debit card, the amount is debited directly from the cardholder's account and deducted from their balance when a purchase is made.

In some cases, however, it is also possible to pay the expenses made with the debit card in installments.
The BBVA Debit Card offers you this possibility for example. Thanks to the Pay&Plan service you can, after making a purchase, dilute the amount into monthly installments in order to be able to cover your expenses with peace of mind and comfortably get to the end of the month.
Log into your account and look for the purchases with the "payable in installments" label in the list of transactions: you will be able to install up to 5 purchases in a single transaction, you will have up to 90 days of time from the purchase and you will pay really advantageous fees.